What is the isocost line for a budget of $16 million? What is t… Show more we have q = F(K;L) = (2/100)K 0.5 L 0.5 What is the isocost line for a budget of $16 million? What is the equation for the isoquant? Find the slope (the derivative) of this isoquant and this isocost line.2 What condition has to hold so that you minimize costs? The minimized cost as a function of output q is C(q) = 2000q (where Cost is in thousands of $), so how many movies can you a ord to produce at the afore-mentioned budget? What is the additional cost of an additional movie now? How much does it cost on average to produce a movie? Comparing these costs to the situation when you have 100 units of capital as in question 2, then is your average cost higher or lower [assuming you want to produce 8 movies]? What about the marginal cost? Briefly state why. Imagine that you come in as a new manager and discover that the current capital-labor ratio is K=L = 1. If you spend 100 additional (marginal) dollars on hiring more labor, how many additional (marginal) units of labor can you hire and how much more output can you produce? Answer the same for capital. If you have to stay on the same budget, would you hire or re workers? • Show less